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CNN Live At Daybreak

G8 Focusing on Middle East

Aired June 26, 2002 - 05:01   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Turning now to the crisis in the Middle East, CNN has learned the Palestinian Authority will announce today that presidential and legislative elections will begin in January. This comes on the heels of President Bush calling for Yasser Arafat to step down as head of the Palestinian Authority.

In just five minutes we will go live to the region for much more on this. Of course, the Middle East is the main focus of the Group of 8 summit in Canada. President Bush is trying to convince leaders of the world's most industrialized nations to back his Israeli- Palestinian peace plan.

Our senior White House correspondent John King has details from the summit near Calgary.

(BEGIN VIDEOTAPE)

JOHN KING, CNN CORRESPONDENT (voice-over): The president's focus at the annual G8 summit is selling his blueprint for Middle East peace.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The Palestinians need new leadership, elected leadership.

KING: G8 host Prime Minister Jean Chretien wouldn't put it so directly, yet seems to agree.

JOHN CHRETIEN, CANADIAN PRIME MINISTER: The president talked about perhaps it would be better to replace Mr. Arafat. I don't have a specific point of view on that. I will think it might be a good thing. I don't want to comment on that.

KING: Israel's military operation in the Palestinian territories is expanding and Mr. Bush clearly wants it to be temporary.

BUSH: Everybody has a right to defend themselves, but all parties must work toward peace.

KING: European support is critical because Mr. Bush wants financial aid withheld unless the Palestinian Authority moves quickly to implement political and security reforms. Britain's prime minister backs Palestinian reforms, but says London will deal with whomever the Palestinians elect as their leader. France and Canada are of the same view, and the challenge for Mr. Bush is to make the case his approach will end the bloodshed.

JAMES STEINBERG, FORMER NATIONAL SECURITY ADVISER: There's deep anxiety, particularly in Europe, that the situation is deteriorating. They're counting on the United States to show leadership.

KING: There is a neighborly but competitive rivalry at play here. Mr. Chretien wants aid to Africa to be the major summit focus. Canadian papers suggest Mr. Bush is stealing the spotlight.

The tiny Rocky Mountain village of Kananaskis is the site for this year's G8 summit, the seven largest industrial economies plus Russia. Security is extraordinary because of terrorism fears. Six thousand soldiers are on hand. A four mile swathe around the resort off limits. Forty-five hundred police, as well, many in Calgary, some 55 miles from the summit site, to keep a watchful eye on protesters, who say the industrial power and the G8 get rich by exploiting the poor.

John King, CNN, Calgary, Canada.

(END VIDEOTAPE)

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